Kenya and the United Kingdom have ratified a new trade deal ahead of the United Kingdom’s exit from the European Union on December 31, 2020.
Kenya and the United Kingdom ratified a new trade agreement before its exit.
The new deal, valued at sh 207.5 billion (£ 1.4 billion), will continue to ensure Kenya’s duty-free and quota-free access to the overseas market.
Kenya’s fresh produce goods including flowers, fruits and vegetables are among the biggest beneficiaries from the retention of the free-market access.
“We have agreed on a comprehensive package of benefits that will ensure a secure, long term and predictable market access for exports originating from the EAC free trade area,” said Trade and Industrialization Cabinet Secretary Betty Maina.
The new framework addresses several new issues, including barriers to free-flowing trade between the UK and Kenya, restrictions on foreign direct investment and intellectual property.
“This is about safeguarding and protecting Kenya’s sh 296.4 billion (£ 2 billion) annual trade ecosystem with the UK, on which hundreds of thousands of jobs and millions of livelihoods depend. Delivery if that has been our primary goal for the year and we are excited to cross the finish line,” said Manoah Esipisu, Kenyan High Commissioner for the UK.
UK’s 2016 Brexit vote sparked the need for a new trade pact between the two countries, forcing Kenya to take swift action to open new negotiations ahead of the UK-EU final divorce later this year.
At the same time, Kenya was forced to go to the negotiating table itself, as its EAC colleagues differed in terms of the topicality of new discussions.
The new deal will begin in 24 days after the Brexit transition, with Kenya retaining dual access to both the EU and UK markets.
By Christabel Airo